Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, announced on Wednesday that he will be resigning from his position by the end of the year. 

In a statement published on Bundesbank's website, "I have come to the conclusion that more than 10 years is a good measure of time to turn over a new leaf – for the Bundesbank, but also for me personally," Weidmann said.

Regarding the ECB's policy strategy, "a symmetrical, clearer inflation target has been agreed. Side effects and in particular financial stability risks are to be given greater attention. A targeted overshooting of the inflation rate was rejected," Weidmann noted and continued:

"In this context, it will be crucial not to look one-sidedly at deflationary risks, but not to lose sight of prospective inflationary dangers either."

Market reaction

The EUR/USD pair trade in the negative territory near 1.1620 following this development.